Income Tax Act

Official PDF pages 441–445

SOURCE PDF PAGE 441
( e )   “commercial activity” means any activity in the nature of trade, commerce
or business, or any activity of rendering any service in relation to any
trade, commerce or business, for a cess or fee or any other considera -
tion, irrespective of the nature of use or application, or retention, of the
income from such activity;
( f )   “registration” includes provisional registration, provisional approval
or approval, as referred to in the second proviso to section 10( 23C ) or
12AB(1) of the Income-tax Act, 1961 (43 of 1961) and under section
332, but shall not include approval under the second proviso to section
80G(5) of the said Act or section 354;
( g )   “registered non-profit organisation” means any person having a valid
registration under any specified provision and such registration has not
been cancelled;
( h )   “related person” means any of the following persons:—
( i )   the author or the founder of the registered non-profit organisa-
tion;
( ii )   any person whose total contribution to such registered non-profit
organisation, during the relevant tax year exceeds   `   100000, or, in
aggregate up to the end of the relevant tax year exceeds ten lakh
rupees, as the case may be;
( iii )   where such author, founder or person is a Hindu undivided family,
a member of the family;
( iv )   any trustee or manager (by whatever name called) of the registered
non-profit organisation;
( v )   any relative of any persons referred to in sub-clause ( i ), ( iii ) or ( iv );
( vi )   any concern in which any of the persons referred to in sub-clause
( i ), ( iii ), ( iv ) or ( v ) has a substantial interest;
( i )   “relative”, in relation to an individual, means—
( i )   spouse of the individual;
( ii )   brother or sister of the individual;
( iii )   brother or sister of the spouse of the individual;
( iv )   any lineal ascendant (maternal or paternal) or descendant of the
individual;
( v )   any lineal ascendant (maternal or paternal) or descendant of the
spouse of the individual;
( vi )   spouse of a person referred to in sub-clause ( ii ), ( iii ), ( iv ) or ( v );
( vii )   any lineal descendant of a brother or sister of either the individual
or of the spouse of the individual;
( j )   “residual income” means the total income without giving effect to the
provisions of this Part, as reduced by regular income and specified
income;

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( k )   “specified asset” means any asset which is established to have been
directly acquired by the specified person—
( i )   out of its income of the nature referred to in Schedule II (Table: Sl.
No. 1);
( ii )   during the period beginning from the date of its creation or estab -
lishment and ending on the date from which the registration under
specified provision became effective, if the specified person has not
been allowed any benefit under this Part or under sections 11 and
12 or section 10( 23C )( iv ) or ( v ) or ( vi ) or ( via ) of the Income-tax Act,
1961 (43 of 1961) during the said period, where provisions of the
first proviso or the second proviso to section 12A(2) or the eighth
proviso to section 10( 23C ) of the said Act, are not applicable;
( iii )   during the period beginning from the date of its creation or estab -
lishment and ending on the date from which the registration under
specified provision became effective due to the provisions of the
first proviso or the second proviso to section 12A(2) or the eighth
proviso to section 10( 23C ), where provisions of the first proviso or
the second proviso to section 12A(2) or the eighth proviso to section
10( 23C ), of the Income-tax Act, 1961 (43 of 1961), are applicable;
and
( iv )   which has been transferred to any other specified person within
twelve months from the end of the month in which the dissolution
takes place in respect of a case specified in section 352(4) (Table:
Sl. No. 9);
( l )   “specified person” means any person which is registered under any
specified provision at any time since its incorporation or creation;
( m )   “specified provision” means section 12A, 12AA or 12AB or section 10( 23C )
of the Income-tax Act, 1961 (43 of 1961) or section 332;
( n )   “substantial interest”, in relation to a person in a concern, means—
( i )   in a case where the concern is a company, if its shares (not being
shares entitled to a fixed rate of dividend whether with or without
a further right to participate in profits) carrying not less than 20%
of the voting power are, at any time during the tax year, owned
beneficially by such person or partly by such person and partly by
one or more of the other related persons; or
( ii )   in the case of any other concern, if such person is entitled, or such
person and one or more of the other related persons are entitled in
the aggregate at any time during the tax year, to not less than 20%
of the profits of such concern;

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( o )   “value” means the value of any benefit or facility granted or provided
free of cost or at concessional rate to any related person;
( p )   “wholly for charitable or religious purposes” shall mean wholly for char -
itable purposes or wholly for religious purposes or wholly for charitable
and religious purposes.
CHAPTER XVIII
APPEALS, REVISIONS AND ALTERNATE DISPUTE RESOLUTIONS
A.—Appeals
1. —Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals)
Appealable orders before Joint Commissioner (Appeals).
356.   (1) Any assessee or any deductor or any collector, aggrieved by any of the
following orders of an Assessing Officer (below the rank of Joint Commissioner)
may appeal to the Joint Commissioner (Appeals) against—
( a )   an order being an intimation under section 270(1) or 399(1), where the
assessee or deductor or collector objects to the adjustments made therein;
or
( b )   an order under section 270(10) or 271, where the assessee objects to the
amount of income assessed, or to the amount of tax determined, or to
the amount of loss computed, or to the status under which he is assessed;
or
( c )   an order of assessment, reassessment or recomputation under section
279; or
( d )   an order under section 398; or
( e )   an order imposing penalty under Chapter XXI; or
( f )   an order under section 287 or 288 amending any of the orders or inti -
mations mentioned in clauses ( a ) to ( e ).
(2) No appeal shall be filed before the Joint Commissioner (Appeals) if an order
referred to in sub-section (1) is passed by or with the prior approval of an income-tax
authority above the rank of Deputy Commissioner.
(3) The Board or an income-tax authority so authorised by the Board in this regard,
may transfer—
( a )   any appeal filed against an order referred to in sub-section (1), which is
pending before the Commissioner (Appeals), and any matter arising out
of or connected with such appeal and which is so pending, to the Joint
Commissioner (Appeals); or
( b )   any appeal which is pending before a Joint Commissioner (Appeals)
and any matter arising out of or connected with such appeal and which
is so pending, to the Commissioner (Appeals), regardless of anything
contained in sub-sections (1) and (3)( a ),

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who may proceed with such appeal or matter, from the stage at which it was before
it was so transferred.
(4) Where an appeal is transferred under sub-section (3), the appellant shall be given
an opportunity of being reheard.
(5) For the disposal of appeal under this section, the Central Government may
notify a scheme, so as to dispose of appeals in an expedient manner with transparency
and accountability, by eliminating the interface between the Joint Commissioner
(Appeals) and the appellant, to the extent technologically feasible and direct that
any of the provisions of this Act relating to jurisdiction and procedure for disposal
of such appeals, shall not apply or shall apply with exceptions, modifications and
adaptations.
(6) The Board may specify that any provisions of this section shall not apply to any
case or class of cases.
(7) For the purposes of this section and section 357, “status” means the category of
person as defined in section 2( 77 )   under which the assessee is assessed.
Appealable orders before Commissioner (Appeals).
357.   Any assessee or any deductor or any collector, aggrieved by any of the
following orders, may appeal to the Commissioner (Appeals) against—
( a )   an order passed by a Joint Commissioner under section 231(4)( b );
or
( b )   an order against the assessee where the assessee denies his liability
to be assessed under this Act; or
( c )   an order being an intimation under section 270(1) or 399(1), where
the assessee or the deductor or the collector objects to the adjust -
ments made therein; or
( d )   any order of assessment under section 270(10), except an order
passed in pursuance of directions of the Dispute Resolution Panel
or an order referred to in section 274(12) or 271, where the assessee
objects to the income assessed, or to the amount of tax determined,
or to the amount of loss computed, or to the status under which he
is assessed; or
( e )   an order of assessment, reassessment or recomputation under
section 279 [except an order passed in pursuance of directions
of the Dispute Resolution Panel or an order referred to in section
274(12)] or 283; or
( f )   an order made under section 169(3)( a ); or
( g )   an order made under section 287 or 288 having the effect of
enhancing the assessment or reducing a refund or an order refusing
to allow the claim made by the assessee under either of the said
sections except an order referred to in section 274(12); or
( h )   an order made under section 306 treating the assessee as the agent
of a non-resident; or

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( i )   an order made under section 313(2) or (4); or
( j )   an order made under section 315; or
( k )   an order made under section 398; or
( l )   an order made under section 431; or
( m )   an order made under section 434; or
( n )   an order imposing or enhancing a penalty under Chapter XXI; or
( o )   an order imposing a penalty under section 412; or
( p )   an order passed under section 294(1)( c ); or
( q )   an order imposing a penalty under section 298(2); or
( r )   an order made by an Assessing Officer under the provisions of this
Act in the case of such person or class of persons, as the Board may,
having regard to the nature of the cases, the complexities involved
and other relevant considerations, direct.
Form of appeal and limitation.
358.   (1) Every appeal under this Chapter shall be in such form and verified in
such manner, as may be prescribed.
(2) An appeal referred to in sub-section (1), made to the Commissioner (Appeals) or
to the Joint Commissioner (Appeals), shall be accompanied by a fee of—
( a )   `   250, where the total income of the assessee as computed by the Assessing
Officer in the case to which the appeal relates is   `   100000 or less;
( b )   `   500, where the total income of the assessee, computed as aforesaid, in
the case to which the appeal relates is more than   `   100000 but not more
than   `   200000;
( c )   `   1000, where the total income of the assessee, computed as aforesaid,
in the case to which the appeal relates is more than   `   200000;